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Firm Size Distribution and Employment Fluctuations : Theory and Evidence

Görg, Holger; Henze, Philipp; Jienwatcharamongkhol, Viroj; Kopasker, Daniel; Molana, Hassan; Montagna, Catia and Sjöholm, Fredrik LU (2016) In Working Papers 2016(32).
Abstract
This paper studies the effect of the firm-size distribution on the relationship between employment and output. We construct a theoretical model, which predicts that changes in demand for industry output have larger effects on employment in industries characterised by a distribution that is more skewed towards smaller firms. Industry-specific shape parameters of the firm size distributions are estimated using firm-level data from Germany, Sweden and the UK, and used to augment a relationship between industry-level employment and output. Our empirical results align with the predictions of the theory and confirm that the size distribution of firms is an important determinant of the relationship between changes in output and employment.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
firm distributionx, firm distribution, firm size, employment, fluctuations, E20, E23, L20
in
Working Papers
volume
2016
issue
32
pages
35 pages
publisher
Department of Economics, Lund University
language
English
LU publication?
yes
id
8589a95f-2c38-4a63-8ea8-48cc0586037f
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2016_032.htm
date added to LUP
2016-12-28 10:09:48
date last changed
2017-10-11 14:03:13
@misc{8589a95f-2c38-4a63-8ea8-48cc0586037f,
  abstract     = {This paper studies the effect of the firm-size distribution on the relationship between employment and output. We construct a theoretical model, which predicts that changes in demand for industry output have larger effects on employment in industries characterised by a distribution that is more skewed towards smaller firms. Industry-specific shape parameters of the firm size distributions are estimated using firm-level data from Germany, Sweden and the UK, and used to augment a relationship between industry-level employment and output. Our empirical results align with the predictions of the theory and confirm that the size distribution of firms is an important determinant of the relationship between changes in output and employment.},
  author       = {Görg, Holger and Henze, Philipp and Jienwatcharamongkhol, Viroj and Kopasker, Daniel and Molana, Hassan and Montagna, Catia and Sjöholm, Fredrik},
  keyword      = {firm distributionx,firm distribution,firm size,employment,fluctuations,E20,E23,L20},
  language     = {eng},
  month        = {11},
  note         = {Working Paper},
  number       = {32},
  pages        = {35},
  publisher    = {Department of Economics, Lund University },
  series       = {Working Papers},
  title        = {Firm Size Distribution and Employment Fluctuations : Theory and Evidence},
  volume       = {2016},
  year         = {2016},
}